Spread Betting on the Market to Fall

A benefit of placing a spread bet is that investors can short sell the markets, i.e. bet that the markets will drop.

When we began this example, the market was priced at 15519 – 15529.

If you were to sell the Nikkei 225 at 15519 and the stock market fell then you might see the price move to 15364 – 15374. If this were the case, you might decide to close your position for a profit by buying at 15374.

Be aware that this is a Rolling Daily trade. This sort of market does not have a preset closing date and automatically rolls over to the next trading day. If it does roll, then you may receive a small credit or incur a small financing cost. For more details see guide to rolling daily charges.

Nikkei 225 Demo Accounts

What if you want to try things out? The following companies also have demo accounts. You can use these to see how spread betting works on the Nikkei 225 without putting your funds at risk.

Spread betting carries a high level of risk. You can lose more than your initial investment or stake. Spread betting may not be suitable for all investors. Only trade with money that you can afford to lose. Make sure you fully understand the risk involved. If necessary, seek independent financial advice.

Spread betting carries a high level of risk. You can lose more than your initial investment or stake. Spread betting may not be suitable for all investors. Only trade with money that you can afford to lose. Make sure you fully understand the risk involved. If necessary, seek independent financial advice.

SpreadBets.org.uk does not endorse the information and analysis available on this site. It is a personal view of the writer and purely for information purposes. Under no circumstances is the information hereon to be used or considered as, an offer to sell, or a solicitation of any offer to buy. The website content does not constitute investment advice and neither the individual writer(s) nor SpreadBets.org.uk accepts any responsibility for any use of the content.

* Spread betting is tax free in the UK. This tax free status is subject to change and can differ if you pay tax outside the UK.